Generation of form 15CA / 15CB

Overview

Form 15CA and Form 15CB are required in India when making certain types of payments to non-residents, such as technical services fees, royalty payments, rent, and consultancy fees, among others. Filing Form 15CA and obtaining Form 15CB ensures compliance with the tax laws in India and helps avoid penalties and fines for non-compliance.
Form 15CA is a declaration form that is required to be submitted by a person responsible for making a payment to a non-resident or a foreign company, if the payment exceeds a specified limit. The form contains details of the payment and the PAN of the recipient.
Form 15CB, on the other hand, is a certificate issued by a Chartered Accountant (CA) certifying that the payment being made to a non-resident or a foreign company is not chargeable to tax in India. The form contains details of the recipient, the payment, and the calculation of the tax liability, if any.

Documents Requirements

Required in Soft Copy Only

Documents of Applicant

PAN & Aadhar Card of the person making the payment
PAN & Aadhar Card of the recipient
Email id and Mobile Number
Bank account details for making the payment
Details of the recipient, including their name, address, and nationality
Details of the payment being made, including the amount, purpose, and mode of payment
Digital Signature Certificate (DSC)

Advantages

Legal Compliance

By using Form 15CA and Form 15CB, individuals and businesses ensure compliance with the regulations set by the Indian government for reporting foreign remittances.

Evidence of Tax Withholding

Form 15CB serves as evidence of the tax withholding while making payments to non-residents, which can be useful in case of an audit or review by the Income Tax Department.

Streamlined Process

Filing Form 15CA and obtaining Form 15CB simplifies the process of making payments to non-residents, as the person responsible for making the payment is provided with clear guidelines on the amount of taxes to be withheld.

Avoiding Penalties

Failing to report foreign remittances can result in penalties, fines, and other legal consequences. By using Form 15CA and Form 15CB, individuals and businesses can avoid these penalties.

Avoidance of Double Taxation

Form 15CA and Form 15CB help ensure that the correct amount of taxes is withheld and deposited with the government, avoiding the possibility of double taxation for the recipient of the payment.

Clarity on Tax Obligations

Filing Form 15CA and obtaining Form 15CB provides clarity on the tax obligations while making payments to non-residents, avoiding any confusion or uncertainty.

Record Keeping

Filing Form 15CA and obtaining Form 15CB helps maintain proper records of payments made to non-residents, which may be required for
future reference.

Transparency

The forms provide a transparent record of foreignremittances, which can be beneficial for both the remitter and the recipient.

Frequently Asked Question

Form 15CA is a declaration that needs to be filed online with the Income Tax Department in India before making any payment to a non-resident. It contains details of the payment being made, the recipient, and the purpose of the payment.

Form 15CB is a certificate issued by a Chartered Accountant (CA) certifying the amount of taxes that needs to be withheld while making payments to a non-resident. This certificate is required in cases where the payment being made is subject to withholding tax in India.

Form 15CA is required to be filed by any person who is making a foreign remittance from India, while Form 15CB is required to be issued by a Chartered Accountant (CA) in cases where the foreign remittance is taxable in India.

Form 15CA is required to be filed before making the foreign remittance such as technical services fees, royalty payments, rent, and consultancy fees,etc while Form 15CB is required to be obtained prior to filing Form 15CA.

No, it is not mandatory to submit Form 15CB. Form 15CB is an event-based form to be filled only when the remittance or aggregate of remittance amount exceeds Rs 5 Lakhs during a financial year and you are required to furnish a certificate from a chartered accountant defined as per Section 288.

Form 15CB can only be issued by a Chartered Accountant (CA) registered with the Institute of Chartered Accountants of India (ICAI).

Yes Form 15CA can be withdrawn within 7 days from submission date.

No, a certificate from a Chartered Accountant (CA) is only required in cases where the foreign remittance is taxable in India. In other cases, Form 15CA can be filed without a Form 15CB.

Form 15CA requires information on the person making the foreign remittance, the recipient, the purpose of the remittance, and the amount to be remitted. Form 15CB requires information on the nature and purpose of the remittance, the applicable tax laws, and the amount of tax to be withheld, if applicable.

Failure to file Form 15CA and Form 15CB can result in penalties and fines, and may also result in the foreign remittance being deemed taxable in India, even if it would not have been otherwise.

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Generation of form 15CA / 15CB